As Predicted 2 …
Krugman et al., the people who were screaming we were about to go over the cliff years before it happened, have been screaming that austerity government budgets were the wrong way to deal with the aftermath.
Ireland was the poster child for the “austerians”, the model for how governments needed to deal with the crisis with massive budget cuts.
The BBC reports that the Irish economy contracts by 1.2%
The Irish Republic’s economy shrank in the second quarter from the previous three months, surprising analysts who had been expecting growth.
Gross domestic product (GDP) fell 1.2%, the Central Statistics Office said. It also revised down its measure of growth in the first quarter to 2.2% from 2.7%.
Gross national product (GNP), seen by some as a more accurate barometer of the economy, fell by 0.3%.
The government has been seeking to reassure investors about the economy.
Excuse me, but screw the “investors”! They are clueless collection of crap shooters that caused the meltdown. In the absence of any other information doing the opposite of the “investors” want is a good general guide for getting back on track for a national economy.
